Building Product Stocks' Q3 Earnings On Nov 9: GCP, BLD

With the earnings season drawing to a close, 84.6% companies in the construction space have reported their Q3 results. According to our latest Earnings Preview, 36.4% have surpassed earnings estimates while 9.1% beat revenue expectations.

Total earnings for construction companies have increased 6.2% on 6.7% higher revenues so far.

Positives like a healthier economy, improving employment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s second-half performance. Further, a strong home remodeling market along with solid job data and rising consumer confidence are doing the trick for these stocks.

So far, some of the leading companies in the construction sector have reported their Q3 numbers. Masco Corporation (NYSE:MAS) reported third-quarter results wherein both earnings and revenues missed the Zacks Consensus Estimate. PulteGroup Inc.’s (NYSE:PHM) third-quarter 2016 earnings were in line with the Zacks Consensus Estimate while revenues missed the same. KB Home’s (NYSE:KBH) earnings surpassed analysts’ expectations by 7.7% and also increased 83% year over year in the third quarter.

Let us take a look at how these construction sector stocks are placed ahead of their third-quarter earnings releases on Nov 9.

GCP Applied Technologies Inc. (NYSE:GCP) provides specialty construction chemicals and building materials as well as packaging technologies.

Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.

GCP has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.

The company reported positive earnings surprise in last quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Meanwhile, the Zacks Consensus Estimate for earnings is pegged at 41 cents.

GCP APPLIED TEC Price and EPS Surprise

GCP APPLIED TEC Price and EPS Surprise | GCP APPLIED TEC Quote

TopBiuld Corp. (NYSE:BLD) was formed when Masco Corporation completed the spin-off of its Installation and Other Services segment on Jun 30, 2015. This company engages in the installation and distribution of insulation products to the construction industry, primarily in the U.S.

Our proven model does not conclusively show a beat for TopBiuld as it has a combination of an Earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate at 62 cents) and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the preceding quarter, the company posted a negative earnings surprise of 2.27%. The company has an average positive surprise of 28.19% for the trailing four quarters.

For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 62 cents, reflecting growth of 24% year over year, while the consensus for revenues is at $461.6 million, indicating a 7.9% year-over-year increase.

TOPBUILD CORP Price and EPS Surprise

TOPBUILD CORP Price and EPS Surprise | TOPBUILD CORP Quote

Where Do Zacks' Investment Ideas Come From?

You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 ""Strong Sells"" and other private research. See the stocks free >>